It sketches out big tax cuts for businesses and high-income households, modest tax cuts for middle-income taxpayers, and simplification of the individual tax code—all of which would reduce federal revenues by trillions of dollars over the next decade. Trump is approaching tax reform very differently than President Reagan, who kicked off the debate over what would become the Tax Reform Act of 1986 with a comprehensive opening bid. Oddly, it describes three individual income tax rates—12-25-35--then says a fourth higher bracket “may apply.”It isn’t tax reform. Yet, it fails to identify a single individual tax preference it would eliminate. It would simplify the individual income tax.

Source: Forbes September 27, 2017 19:15 UTC